Tag Archives: America (Energy)

Brazil will be ‘key player’ in climate summit, talks – White House | Instant News


FILE PHOTO: White House Press Secretary Jen Psaki addresses reporters at the White House in Washington, USA, January 25, 2021. REUTERS / Kevin Lamarque

WASHINGTON (Reuters) – Brazil will be a key player in climate negotiations with the Biden administration, the White House said Thursday.

“This is a huge priority for President Biden and that’s why he asked his good friend, former Secretary (John) Kerry, to lead our international climate efforts, and of course Brazil will be a key partner in that,” White House press secretary Jen Psaki told a press conference.

During the 2020 presidential campaign, Biden said Brazil’s rainforests were being “torn down” and the countries proposed offering Brazil $ 20 billion to stop deforestation or face “economic consequences”.

Reporting by Nandita Bose and Doina Chiacu; Edited by Leslie Adler

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New Fortress Energy is betting on Brazilian LNG growth with the acquisition of Hygo | Instant News


RIO DE JANEIRO (Reuters) – US-based New Fortress Energy Inc said on Wednesday it would buy natural gas company Hygo Energy Transition Ltd for $ 2.18 billion to expand its presence in Brazil, the frontier for growth in the burgeoning liquefied natural gas market. developing.

New Fortress, an energy infrastructure company, is among the private sector players turning their sights to Brazil, where demand for super-cooled LNG is increasing, although the market is smaller than in India and China, where power generation is shifting away from more coal. dirty to natural gas.

With Brazil opening up its natural gas industry to private investors, other companies including oil major BP PLC and US-based EIG Global Partners are also planning multibillion-dollar investments in the country.

New Fortress, a growing competitor in the LNG industry, has a small liquefaction plant in Florida and ships LNG throughout the Caribbean. In the past year, its market value has jumped 286% to $ 10 billion, according to Refinitiv Eikon data. The company is building a larger LNG import terminal in Mexico.

The company will acquire all of Hygo’s outstanding shares for 31.4 million shares of NFE Class A common stock and $ 580 million in cash.

Brazil’s annual demand for LNG is expected to grow by more than 80% by 2021, the fastest rate in the world, although its starting point is relatively low compared to large Asian consumers, said Kristen Holmquist, forecasting specialist at Poten & Partners.

Unlike these countries, most of Brazil’s electricity comes from hydropower. This LNG supply is partly intended to replace the supply of natural gas from pipelines originating from Bolivia.

Hygo transports supercooled fuel and has become a key player in Brazil’s natural gas industry as state-controlled Petrobras sells assets, canceling what was almost a monopoly on the market.

Hygo – a 50-50% joint venture between US private equity firm Stonepeak Infrastructure Partners and Golar LNG – has recently invested in a number of LNG projects in Brazil for power generation. The company is also competing to operate a highly desirable LNG import terminal which is leased by Petrobras.

“There is strong growth in Brazil for electricity-powered projects,” Holmquist said in a webinar on Wednesday.

Hygo has told Reuters in 2020 that it plans to use LNG instead of diesel in trucks.

The transaction has a corporate value of $ 3.1 billion and an equity value of $ 2.18 billion, according to the statement.

The Hygo acquisition comes four months after the company’s trading debut in New York was suspended at the last minute after Brazilian federal prosecutors said the then company’s chief executive was appointed in the early stages of a corruption investigation, to activity at the company previously.

The CEO at the time, Eduardo Antonello, had left the company. He hasn’t been charged.

New Fortress also agreed to buy Hygo’s controlling company, Golar LNG Partners LP for about $ 251 million in general equity value and a company value of $ 1.9 billion.

Golar LNG Ltd was up 15% in US trading, while New Fortress Energy was up 10%.

Reporting by Sabrina Valle and Rithika Krishna; Edited by Maju Samuel, Krishna Chandra Eluri, Steve Orlofsky and David Gegoryo

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Petrobras prioritizes reducing carbon as Equinor pursues renewable energy in Brazil | Instant News


FILE PHOTO: A man walks in front of the Petroleo Brasileiro SA (Petrobas) headquarters in Rio de Janeiro, Brazil March 9, 2020. REUTERS / Sergio Moraes

RIO DE JANEIRO (Reuters) – Petrobras will invest in technology to reduce its carbon footprint from oil extraction activities rather than renewable energy over the next five years, said the chief executive of the Brazilian state-controlled company.

Roberto Castello Branco has repeatedly said Petroleo Brasileiro SA, known as Petrobras, does not have a comparative advantage in renewable energy and that many of the environmental targets put forward by European competitors are fantastic.

His comments on Tuesday contrasted with those made earlier by Equinor ASA CEO Anders Opedal at an oil industry conference where he said Norwegian companies were looking for offshore wind opportunities in Brazil.

Opedal referred during the Rio Oil & Gas conference to a 2018 memorandum of understanding (MOU) between Equinor and Petrobras to pursue an offshore wind power project in Brazil.

It has yielded no potential projects so far and Castello Branco’s comments suggest it is unlikely.

“We don’t expect to invest a dollar in renewable energy over the next five years,” said Castello Branco while discussing the company’s updated five-year business plan during a presentation to analysts and investors.

Petrobras takes emissions reduction seriously through other means, such as studying the use of hydrogen-powered ships, even for long-haul routes, Petrobras head of logistics and sales André Chiarini said in another presentation.

Castello Branco said that Petrobras is likely to sell offshore natural gas pipeline couplings via an initial public offering in the third quarter of 2021.

But these estimates are subject to change, in part because a potential IPO requires agreement with other stakeholders.

Reporting by Gram Slattery; Edited by Chizu Nomiyama, Paul Simao and Alexander Smith

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Petrobras Brasil opens sales processes for the old Marlim oil cluster | Instant News


FILE PHOTO: The logo of the Brazilian state-owned Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File / Photo File

RIO DE JANEIRO (Reuters) – Petroleo Brasileiro SA from Brazil PETR4.SA is preparing to sell a 50% stake in the marine oil cluster in its legacy, the company said Monday in a filing.

In production since the 1980s in the Campos Atlantic Ocean basin, the giant Marlim cluster has four fields – Marlim, Voador, Marlim Leste and Marlim Sul – producing 217,000 barrels of oil per day, or nearly 10% of the company’s total production.

The sale, at an early stage, is part of Petrobras’ plan to sell non-core assets to cut debt and focus investment in the world’s largest deepwater discovery this century, in the so-called pre-salt region.

Newer pre-saline deposits, found under a thick layer of salt on the seabed in Brazilian waters, have increased rapidly in the last decade and are responsible for more than 70% of Petrobras production.

Marlim was once the largest oil field with more than 500,000 barrels per day, Marlim has experienced a decline in production in the last decade. At present, Marlim Sul and Marlim are Brazil’s sixth and eighth largest oil fields, respectively. Marlim Sul has the largest number of producing wells in Brazil, 67.

The four fields which also produce 3.6 million cubic meters of natural gas are located between 90-150 kilometers offshore and up to 2,500 meters below the seabed.

Petrobras shares rose more than 4% in Sao Paulo following the announcement.

Reporting by Sabrina Valle, editing by Louise Heavens and Steve Orlofsky

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The UK fraud office secures assets linked to the Brazilian bribery scandal | Instant News


LONDON (Reuters) – The UK’s Office of Serious Fraud (SFO) said on Thursday it had earned just under 1.2 million pounds ($ 1.6 million) from a Brazilian national involved in Brazil’s “Car Wash Operation”, the country’s largest bribery investigation that began in 2014.

The SFO said it opened a civil recovery investigation into Julio Faerman in 2015 after the former agent of the Netherlands-based oil and gas services group SBM Offshore. SBMO.AS admits to paying bribes to win contracts from the Brazilian state oil company Petroleo Brasileiro (Petrobras) PETR4.SA.

The agency said it was suspected Faerman had bought part of a 4.25 million west London apartment with corrupt funds.

Faerman is subject to a cooperation agreement with Brazilian prosecutors after paying a $ 54 million settlement, according to a London High Court ruling handed down in July.

A London lawyer representing Faerman declined to comment.

“This is a very good outcome for the SFO, sending a clear message that we are not going to sit back and let Britain be a safe port for dirty money,” said Liz Baker, head of the SFO’s international aid and crime product division. .

Faerman was also ordered to pay the SFO a fee of £ 57,000.

Reporting by Kirstin Ridley; Edited by Jan Harvey

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